The helium dilution technique for the measurement of functional residual capacity (FRC) is reviewed with special reference to anaesthesia. A modification is described which permits measurements to be made during intermittent positive pressure ventilation. This modification causes minimal interference with the circuit as it is used for spontaneous respiration. The measuring circuit may be alternated with an open circuit without disturbance of the pattern of breathing (spontaneous or artificial). Potential errors in the measurement of FRC during anaesthesia are considered and assessment of linearity, reproducibility and accuracy is described.